Store control procedure

OBJECTIVE

To establish procedure for proper safekeeping and handling of inventory to ensure it is saleable, usable, and traceable for quick selection and delivery.

POLICY

1. Storage refers to protecting inventory from both damage and shrinkage or theft. Controls include maintaining adequate levels of insurance, keeping inventory clean and properly sheltered, and rotating inventory on a first-in, first-out basis, particularly food products and other perishables.

2. The Storekeeper is responsible for all stocks located in the stores until issuance of the goods has been formally recognized by a store requisition slip.

3. Through a perpetual inventory system, a record of the actual quantity on-hand of any items in store should be available at any time.

PROCEDURE

I- Receiving of inventory

1. The Storekeeper is responsible for checking the goods delivered by receiving staff against the delivery slip. After checking, he will sign the 3-copy delivery slip, retain one copy and forward the remaining two parts back to the receiving staff.

2. The Storekeeper should immediately unpack and store items upon receipt. Repackaging very small items (nuts, bolts, screws, etc.) in uniform, see-through plastic containers should be considered. Perishable items should be marked with the date received.

II- Storage of inventory

1. All areas containing inventory should be organized to their optimal standard. The layout of the storerooms is determined so that each item will be stored at one specific location for easier handling.

2. The Storekeeper is responsible to monitor the security of the storeroom area and should lock the storeroom during off-duty hours in order to prevent theft. No outside persons should be allowed into the storerooms, even in the presence of the Storekeeper.

3. The Storekeeper should rotate the inventory on a first-in, first-out basis, particularly food products and other perishables, when stocking shelves.

The Storekeeper should remove the older items from the shelf first, and then place the new items on the shelf followed by replacing the old items to the shelf in front of the new items.

The expiration dates on the older items should be checked during this process, when they are taken off the shelf. This is the best time to inspect the inventory and remove old or expired items before they are put back onto the shelf.

 1. Storeroom areas must be kept neat and clean at all times. For food and beverage items, temperature and sanitation control are primordial:

- Temperature and lighting should accommodate the stored items. Refrigerators and freezers should maintain at a certain temperature and temperatures must be checked at least twice a day and recorded in a log maintained for each refrigerator unit.

- For sanitation reasons, goods should not be stored directly on the floor but on a wooden stand (for seed & flour sacks for example), careful consideration should be paid when deciding which goods should be stored together.

III- Record keeping for inventory

1. Inventory records should be maintained by recording receipt and issuance of items for all inventories in order to uncover any discrepancy between inventory records and the physical count as soon as possible.

2. Cross checks of book inventory balance and actual inventory balance should be performed periodically and randomly.

3. For items that are consumed frequently and consistently, a standard inventory amount should be determined for each item by considering the consumption amount and a replenishing system to maintain the standard inventory amount should be established, based on a minimum reorder point. In any case, attention must be paid not to store excessive amounts.

4. The Storekeeper is responsible for maintaining the inventory level and for placing reorder purchase requisitions.